Western Digital has been rising sharply all month, and one trader is doubling down for more gains in coming weeks.
OptionMonster's Heat Seeker tracking system shows that 2,000 January 40 calls were sold for $2.28 and 4,000 January 44 calls were bought for $0.63 and $0.64. Volume was below open interest in the January 40s but above it in the January 45s, indicating that a trader is rolling a position to a higher strike price.
The January 40s are in the money, even though the stock slipped 0.17 percent at $42.09 with the market slide on Friday. So the trader is selling those calls and applying the proceeds to the purchase of twice as many January 44 contracts. Our systems detected a similar roll on Dec. 11, when a trader sold 2,000 January 37s and bought 5,000 January 40s.